Construction will start this year.
Planning permission has been officially granted for a 20-bed Midlands Specialist Palliative Care Unit.
The Government is set to commit €24 million in capital funding to support the development of the facility on Arden Lane, Tullamore.
The decision comes following Offaly County Council's decision to grant a material contravention of the county development plan last month.
The plans provide for 20 inpatient beds, Day Therapy unit, Education Centre, car parking and EV charging facilities.
Minister for Health Jennifer Carroll MacNeill is describing the decision as "an important milestone" while HSE spokesperson Kate Killeen White says the development is "a landmark moment".
Construction is set to commence this year.
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